TIDMFAR
RNS Number : 4103H
Ferro-Alloy Resources Limited
27 July 2023
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES
OF THE MARKET ABUSE REGULATION (EU) NO. 596/2014 (INCLUDING AS IT
FORMS PART OF THE LAWS OF ENGLAND AND WALES BY VIRTUE OF THE
EUROPEAN UNION (WITHDRAWAL) ACT 2018 ("MAR").
27 July 2023
Ferro-Alloy Resources Limited
("Ferro-Alloy" or the "Group" or the "Company")
Launch of Bond Programme and Listing of First Tranche
Ferro-Alloy Resources Limited (LSE:FAR), the vanadium producer
and developer of the large Balasausqandiq vanadium deposit in
Southern Kazakhstan , is pleased to announce the launch of a new
phased US$20 million exempt offer bond programme valid until 31
July 2033 (the "Programme"). The Company has listed the first
tranche of the bonds under the Programme on the Astana
International Exchange ("AIX") with the ability to raise up to US$3
million initially.
Summary
-- The Company's previously issued bonds amounting to US$1.1
million were redeemed at maturity in March 2023. Further to this
redemption, the Company has launched the Programme, which was
approved by the AIX on 24 July 2023.
-- The highlights of the Programme are as follows:
o The Programme will comprise one or more tranches of bonds,
each listed on the AIX;
o The total nominal value of all tranches issued under Programme
shall not exceed US$20 million;
o Each tranche of the Programme will be offered only to
accredited investors (as defined by 1.1.2(6)(a) of AIFC MAR Rules)
based in Kazakhstan and governed by the laws and regulations of the
Astana International Financial Centre ("AIFC");
o Bonds issued under the Programme will be denominated in either
US dollars or Kazakhstan tenge with interest payable to bondholders
bi-annually;
o All bonds issued will rank as unsecured debt obligations of
the Company; and
o The applicable coupon rate, duration, issue price and other
relevant terms of any bonds issued under the Programme will be
defined and determined by the terms and conditions of each tranche
of bonds issued.
First Tranche
-- On 27 July 2023, the Company listed the first tranche of
bonds under the Programme on the AIX ("the First Tranche") with the
ability to raise up to US$3 million.
-- A summary of the terms and conditions of the First Tranche is as follows:
- ISIN: KZX000001474
- Specified currency: US Dollars
- Face value: US$2,000
- Number of bonds: 1,500 units
- Total nominal amount of the bonds: US$3 million
- Issue date: 27 July 2023
- First date of trading: 28 July 2023
- Last date of the circulation period: 26 July 2026
- Maturity date: 27 July 2026
- Coupon rate: 9.0% fixed of the nominal value of the bonds issued
- Frequency of interest payments: twice a year, 27 January, and
27 July of each year, commencing on 27 January 2024
- Coupon basis: 30 days in a month / 360 days in a year
-- Trading of the First Tranche of bonds will commence on 28 July 2023.
Commenting on the Programme, Nick Bridgen, CEO of Ferro-Alloy
Resources said:
" The Programme will provide the Company with the opportunity to
replace the bonds that were repaid in March 2023, and provide the
flexibility to make further bond issuances to finance the
acceleration of the Company's development as required in the
future."
For further information, visit www.ferro-alloy.com or contact:
Ferro-Alloy Resources Nick Bridgen (CEO) info@ferro-alloy.com
Limited / William Callewaert
(CFO)
Shore Capital Toby Gibbs/Lucy Bowden
(Joint Corporate Broker) +44 207 408 4090
Liberum Capital Limited Scott Mathieson/Kane
(Joint Corporate Broker) Collings +44 20 3100 2000
------------------------ ---------------------
St Brides Partners
Limited
(Financial PR & IR Catherine Leftley/Ana
Adviser) Ribeiro +44 207 236 1177
------------------------ ---------------------
About Ferro-Alloy Resources Limited:
The Company's operations are all located at the Balasausqandiq
deposit in Kyzylordinskoye Oblast in the South of Kazakhstan.
Currently the Company has two main business activities:
a) the high grade Balasausqandiq vanadium project (the
"Project"); and
b) an existing vanadium concentrate processing operation (the
"Existing Operation")
Balasausqandiq is a very large deposit, with vanadium as the
principal product together with several by-products. Owing to the
nature of the ore, the capital and operating costs of development
are very much lower than for other vanadium projects.
The most recent mineral resource estimate for ore-body one (of
seven) provided an Indicated Mineral Resource of 32.9 million
tonnes at a mean grade of 0.62% V(2) O(5) equating to 203,364
contained tonnes of vanadium pentoxide ("V(2) O(5) "). In the
system of reserve estimation used in Kazakhstan the reserves are
estimated to be over 70m tonnes in ore-bodies 1 to 5 but this does
not include the full depth of ore-bodies 2 to 5 or the remaining
ore-bodies which remain substantially unexplored.
The Project will be developed in two phases, Phase 1 and Phase
2, treating 1m tonnes per year and an additional 3m tonnes per
year. Production will be some 5,600 tonnes of V(2) O(5) from Phase
1, rising to 22,400 tonnes V(2) O(5) after Phase 2 is
commissioned.
There is an existing concentrate processing operation at the
site of the Balasausqandiq deposit. The production facilities were
originally created from a 15,000 tonnes per year pilot plant which
was then expanded and adapted to recover vanadium, molybdenum and
nickel from purchased concentrates.
The existing operation is located on the same site and uses some
of the same infrastructure as the Project, but is a separate
operation which will continue in parallel with the development and
operation of the Project.
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END
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July 27, 2023 04:00 ET (08:00 GMT)
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